April
From the priority area Basic Needs

April cheerfully arrives at the front door when there is a knock. She welcomes her visitor into the condominium she recently purchased. April (above left) is surrounded by paint buckets, brushes, new flooring and major appliances, not to mention a myriad of tools and equipment. The floors have been scraped bare. Despite the renovations and work that lie ahead, April is upbeat and personable, happy to discuss how an Idependent Development Account at Liberty Bank helped her purchase a home to call her very own.

Independent Development Accounts (IDAs) are restricted savings accounts designed to assist people with no or minimal assets to accumulate savings. The program participants receive formal and informal training opportunities to learn how to manage and budget money, improve their earning capacity, and invest in themselves. An IDA can be used to purchase a first home and is based on accumulation and investment, rather than income and consumption. Programs are generally managed by community organizations and accounts are held at local financial institutions. As an incentive to participate, public and private funds are contributed by the financial institution and organization to match what the individual has saved.

In April's case, she simply picked up the phone and contacted Liberty Bank about setting up some kind of savings account for a future home. The Liberty Bank employee suggested she talk to Antonio Gooding, who coordinates the IDA program there. "I wish I knew that person's name who referred me to Antonio," says April. "So I could thank her."

For nearly one year, April attended informational sessions on topics such as inspections, appraisals, and closings and heard from experts in the field. She also met with Antonio to discuss issues and receive guidance. All that time, she was required to save a certain amount to a savings account. When it was time to begin house-hunting, April got Anontio's approval and she found a condominium in Groton. Liberty Bank and United Way of Southeastern Connecticut provided matching funds (based on a ratio to her savings) that aided in the purchase.

April is excited about her new home and admits she couldn't have accomplished it without the IDA program and matching funds she received. "I would absolutely recommend the IDA program to anyone," April says. "I've learned so much and I'm very grateful."

Though a relatively new concept, IDAs are proving to be a successful strategy across the country to increase home ownership and savings accumulation. A study by the Center for Enterprise Development in Washington shows that a national IDA demonstration with an investment of $291 million into IDAs will produce net returns of $1.6 billion within a decade.

United Way is proud to partner with Liberty Bank on this innovative solution to a pressing community issue. Because a strong community is a good place to come home to...that's what matters.